Casablanca, Morocco – The Moroccan mortgage market has defied expectations, maintaining stability despite concerns of an impending interest rate surge. After multiple central bank rate hikes in 2022, fears of soaring mortgage rates have, in retrospect, proven unfounded. According to an analysis by Afdal, this trend continued unabated through December, with lending institutions offering loans at a fixed rate of 4.50% for periods ranging from 8 to 15 years for borrowers with strong credit profiles, and a slightly higher rate of 4.75% for extended durations.
The analysis underscores that Moroccan banks have consistently upheld this interest rate stability for several months. The rate structure remained unchanged in December, as financial institutions maintained their commitment to providing mortgages at 4.50% for loans below 250,000 Moroccan Dirhams (approximately $25,775 USD) with a maximum 15-year term. Loans exceeding this threshold were still accessible at a competitive rate of 4.75%. These figures were corroborated by online real estate credit comparison platforms, reinforcing confidence in the market’s stability.
Delving further into the data, the analysis reveals that borrowers seeking financing for amounts ranging up to 500,000 Moroccan Dirhams (approximately $51,547 USD) encountered the same favorable terms. However, there was a mild uptick in rates noted for loans between 500,000 (approximately $51,547 USD) and 800,000 Dirhams (approximately $82,475 USD), particularly for durations spanning 16 to 25 years. On the contrary, interest rates remained largely unaltered for significantly larger loan amounts, reaching up to 3 Million Moroccan Dirhams (approximately $309,174 USD) for equivalent durations.
“Regardless of the amount requested, the conditions remain attractive for borrowers,” emphasizes the analysis. However, this steadiness in interest rates was juxtaposed against a somewhat subdued year for the Moroccan real estate market, marked by a reduction in property transactions. These transactions retreated to levels akin to those recorded before the onset of the COVID-19 pandemic.
As the year 2024 sets in, uncertainties persist. The evolution of the economy, particularly the trajectory of inflation and the comportment of interest rates, remain pivotal factors capable of influencing demand for real estate credit in the months ahead, cautions the same source.
Nonetheless, an eventual rate hike would run contrary to the current status quo. Consequently, prospective homeowners can hold onto the expectation of continuing to enjoy advantageous financing conditions. Furthermore, certain borrowers may have access to housing assistance programs, potentially exerting a positive impact on the real estate market by stimulating demand. In a market often characterized by unpredictability, stability in lending rates serves as a welcome constant for those navigating Morocco’s property landscape.
